[For Information Purpose Only]
February 21, 2019
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for January 2019
Invincible Investment Corporation (“INV”) hereby announces its monthly performance for hotel
and residential assets.
1. Domestic Hotel and Residential Assets Overview
The combined NOI for the domestic hotel and residential portfolio1 for the month of January
2019 increased 1.2% compared to January 2018 driven by strong performance of INV’s
diversified residential and hotel portfolio.

2. Hotel Assets Overview(1) Domestic Hotels
The hotel portfolio2 performance for the month of January 2019 has shown an increase in ADR
of 4.0% and an increase in RevPAR of 4.0% year-on-year, while occupancy remained flat.
The January 2019 NOI3 for the hotel portfolio increased by 0.5% (year-on-year)
INV owns 37 hotels in the Greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama) which
represent 36.6% of INV’s total property normalized NOI for 20184 based on the assumption thatINV had owned all existing hotels for the full year 2018 (hereinafter the same).
The 34 hotels on variable rent contracts in the Greater Tokyo area continue to demonstratestrong performance with an increase in ADR of 4.8%, occupancy growth of 2.2pt and RevPAR
growth of 7.4% in January 2019 compared with January 2018. The Greater Tokyo area
continues to perform well due to the strict enforcement of Minpaku regulations enacted in June
2018, which eliminated illegal listings and effectively reduced half of the shadow supply ofrooms, along with the continued growth of inbound tourism.

This English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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Table below shows the KPIs for each area of the hotel portfolio2.
Occupancy Rate

ADR (JPY)

RevPAR (JPY)Tokyo 23 Wards

87.2%

8,251

7,193

Greater Tokyo (ex. Tokyo 23 Wards)

86.4%

11,794

10,191

Chubu

74.2%

7,117

5,281

Kansai

81.8%

7,488

6,125

Kyushu

89.7%

9,005

8,078

Hokkaido

85.4%

8,153

6,963

Other domestic

67.1%

15,163

10,175

Total

84.1%

9,091

7,645

(2) Cayman Hotels
The Cayman hotels (the Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine
Suites Resort) represent 10.2% of total property normalized NOI for 2018.
During the month of January 2019, the Cayman hotels achieved an ADR, occupancy rate, andRevPAR that are 23.0%, 0.5pts. and 23.7% above previous year’s performance, respectively.
NOI5 increased by 129.2% (year-on-year), due to a major renovation at the Westin GrandCayman Seven Mile Beach Resort & Spa, as such 2017 NOI was substantially lower thanusual.
Cayman hotels are held in structures that require completed entity specific financial statements
prior to INV’s recognition of the income. As such the October 2018 – March 2019 results for
the Cayman hotels will be recognized in the June 2019 fiscal period.
3. Residential Assets Overview
The residential portfolio6 occupancy rate as of the end of January 2019 was 95.5% (+0.8pt
year-on-year). The rent increase program continues to show strong results as average rentper tsubo as of the end of January 2019 increased by 1.2% year-on-year.
INV’s residential portfolio comprises 64 assets and these residential assets represent 18.7% oftotal property NOI for the December 2018 fiscal period based upon normalized NOI. NOI7 forthe residential portfolio increased by 2.8% in January 2019 (year-on-year).
Rents, compared with immediately preceding leases, increased by 2.5% across all new leases,
1.9% across all renewal leases, and 2.2% across all combined new and renewal leases for theJune 2019 fiscal period. INV achieved a rent increase on 43.4% of contract renewals (June2019 fiscal period), compared to 53.8% for the full year 2018 (-10.4pt. year-on-year). Theretention rate for the existing tenants continues to be high at 79.2% for the June 2019 fiscalperiod.

This English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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4. Performance(1) 55 Hotel Properties

284.1%

Same month of theprevious year
(B)
84.1%

9,091

January 2019
(A)
8Occupancy RateADR (JPY)910

RevPAR (JPY)
Gross Revenue
11(JPY million)# of Properties

8Occupancy Rate
ADR (JPY)

910

RevPAR (JPY)
Gross Revenue
11(JPY million)# of Properties

Difference(A－B)

YoY Change-0.0pt-0.0%

8,742+350

+4.0%

7,645

7,352+294

+4.0%

3,687

3,533+154

+4.4%

55

55

―

―

Fiscal period
ending June 2019
12
Cumulative
(C)
84.1%

Same period of the13previous year
(D)

Difference(C－D)

YoY Change

84.1%-0.0pt

-0.0%

9,091

8,742+350

+4.0%

7,645

7,352+294+4.0%

3,687

3,533+154+4.4%

5555―

―

88.5%

Same month of theprevious year(B)
88.0%

447

(2) Cayman Hotels
January 2019(A)
8Occupancy Rate
ADR (USD)

910

RevPAR (USD)
Gross Revenue(USD)# of Properties

8Occupancy Rate
ADR (USD)

910

RevPAR (USD)
Gross Revenue(USD)# of Properties

Difference(A－B)

YoY Change+0.5pt+0.5%

364+84+23.0%

396

320+76+23.7%

9,488,628

8,971,165+517,463

+5.8%

22――

Fiscal period
ending June 201912Cumulative(C)88.5%

Same period of the13previous year(D)Difference(C－D)

YoY Change

88.0%+0.5pt+0.5%447

364+84+23.0%

396

320

+76

+23.7%

9,488,628

8,971,165+517,463

+5.8%

22――

This English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3(3) 64 Residential Properties

6

Same month of theprevious year
(B)

January 2019(A)

Difference(A－B)

YoY Change

Occupancy Rate

95.5%

94.7%

+0.8pt+0.8%

Rent per Tsubo(JPY)

9,861

9,746+115+1.2%# of Properties

64

64

―

―

Fiscal period
ending June 2019
12
Cumulative(C)Same period of the13previous year(D)

95.5%

94.7%

+0.8pt

+0.8%

9,861

9,746+115

+1.2%

64

64

―

―

14

Occupancy Rate
Rent per Tsubo(JPY)

Difference(C－D)

YoY Change

14# of Properties

5. Portfolio NOI2018 Simulated NOI

Ratio(JPY million)

Tokyo 23 Wards
Greater Tokyo(ex. Tokyo 23 Wards)

Greater Tokyo -43,5NOI(JPY million)

January

January

YoY20192018

Change

6,388

23.5%

387

367

5.4%

3,568

13.1%

283

279

1.6%

9,957

36.6%

671

647

3.8%

Domestic

Subtotal

HotelChubu

1,456

5.4%

3650

-28.7%

Kansai

2,227

8.2%

99

123

-19.1%

Kyushu

1,649

6.1%

109

98

10.7%

Hokkaido

1,479

5.4%

6866

2.7%

Other domestic

2,181

8.0%

-15

-21

28.6%

Domestic Hotel – Subtotal

18,951

69.7%

969

965

0.5%

Residential

5,098

18.7%

432

420

2.8%

Commercial

368

1.4%

30

30

-0.5%

Domestic Asset- Subtotal

24,41789.8%

1,4321,416

1.2%

Overseas

2,782

10.2%

5-20

129.2%

Total

27,200100.0%

1,438

1,395

3.1%

(Note 1) Based on 55 hotel properties and 64 residential properties stated in (Note 2) and (Note 5) below. NOI includes asimulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel as anunderlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 to September 30 and from October
1 to March 31 every year, and INV will receive the dividend within three months from the end of each semi-annual fiscal
This English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

4period of the TMK. Since INV does not receive a dividend from the TMK on a monthly basis, the amount of dividend INV
receives from the TMK for each month is a simulated figure, which is calculated by deducting (i) simulated expenses suchas operating expense of the TMK and the interest of debt (calculated dividing the budget of the TMK for the fiscal periodthat includes the relevant month by the number of months in such fiscal period) from (ii) NOI based on the performance ofSheraton Grande Tokyo Bay Hotel in the month which is three months before the target month for this performance
disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in the TMK (49.0%). Moreover, NOI
does not include the simulated amount of dividend income from the overseas TK interest that owns the Westin Grand
Cayman Seven Mile Beach Resort and Spa and Sunshine Suites Resort as underline assets acquired by INV in
September 2018. Furthermore, NOI is provisional figure and subject to change when it is determined at financialclosing; hereinafter the same.
(Note 2) Based on 55 hotel properties; of the 64 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of November 2018, 9 hotels with fixed-rentlease agreements are excluded. 9 hotels with fixed-rent lease agreements are D29 Super Hotel Shinbashi/Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JRUeno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. As for Sheraton Grande Tokyo Bay hotel, NOI is based on
the figure for the month which is three months prior to the target month for this performance disclosure as INV will receive
the dividend from the TMK within three months of each fiscal period end for the TMK as described above. However, inconsideration of seasonality, figures in the table above are based on the figures for January 2019. Moreover, the Westin
Grand Cayman Resort and Spa and Sunshine Suites Resorts which are the underlying assets of the overseas TK interest
acquired by INV in September 2018 are not included.
(Note 3) NOI for Sheraton Grande Tokyo Bay Hotel includes a simulated amount of dividend income from the TMK. Please refer
to (Note 1) above. Moreover, NOI figures before acquisition by INV is based on the data obtained from third-parties
including previous owners.
(Note 4) Based on the properties owned by INV as of the end of December 2018, assuming all properties were owned since thebeginning of 2018. Includes the dividends from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay
Hotel and estimated TK dividend backed by two Cayman hotels, assuming these dividends contributed throughout theJune 2018 fiscal period and the December 2018 fiscal period of INV. Actual results for the pre-acquisition period of theproperties acquired in 2018 is based on actual results provided by sellers. The TK dividend amount is calculated at theexchange rate of US$1 to ¥110
(Note 5) NOI for the Cayman hotels includes a simulated amount of dividend income from the Seven Mile Resort Holdings Ltd.
(the “Cayman SPC”) that owns the Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resortas underlying assets. The fiscal periods of the Cayman SPC are semi-annual periods from April 1 to September 30 andfrom October 1 to March 31 every year, and INV will receive the dividend within three months from the end of eachsemi-annual fiscal period of the Cayman SPC. Since INV does not receive a dividend from the Cayman SPC on amonthly basis, the amount of dividend INV receives from the Cayman SPC for each month is a simulated figure, which is
calculated by deducting (i) simulated expenses such as operating expense of the Cayman SPC and the interest of debt
(calculated dividing the budget of the Cayman SPC for the fiscal period that includes the relevant month by the number ofmonths in such fiscal period) from (ii) NOI based on the performance of the underlying assets in the month which is threemonths before the target month for this performance disclosure. The TK dividend amount is calculated at the exchange
rate of US$1 to ¥110
(Note 6) Based on 64 properties held as of the beginning of January 2019.
(Note 7) NOI excludes one-off insurance-related revenues and expenses, as well as expenses required to detach trust beneficiaryinterest from an integrated trust account.
(Note 8) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 9) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 10) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate andADR.
(Note 11) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel,
regardless of INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 12) Figures for January 2019 are stated.
(Note 13) Figures from January 2018 are stated. Figures are based on the assumption that the properties acquired from January
1, 2018 to December 31, 2018 were held as of January 1, 2018, and figures before acquisition by INV is based on thedata obtained from third-parties including previous owners.
(Note 14) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of
total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent
per tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum ofThis English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5total leasable area at the end of each month.
(Note 15) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue isrounded down to the nearest million yen.
(Note 16) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on February 21, 2019 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on
their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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